Sales Tax Exempted Goods Updates in Pakistan 2026-27

Updated 26^th July 2026

The President of Pakistan signed Federal Finance Act 2026 on 26^th June 2026. The Act added more GST exemptions for the Tax Year 2026-27. It is important to mention here that the act did not withdraw any existing exemption of sales tax on goods.

We also published a dedicated blog on the GST exempted goods and supplies in Pakistan. It covers all the exemption in details.

Local supplies and imports – New GST exemptions

Now, the following local supply and import of following goods have been declared exempted from levy of general sales tax of 18% for the Tax Year 2026-27.

1. Wheat and rice bran
2. Magazines
3. Import or lease of aircrafts and parts thereof by any airline company (other PIA) registered in Pakistan. This facility will be effective from the first day of July, 2027 without complying with any condition.
4. Contraceptives
5. Female Sanitary Pads and Tampons
6. Import of bullet proof vehicles by (1) Federal Govt for logistics arrangements for Shanghai Cooperation Organization (SCO) summit; and (2) Federal or Provincial Govt for combating threat of terrorism.
7. Import of tankers, dredgers, floating or submersible drilling or production platforms, others floating structures and vessels; and other vessels for transportation of goods.

The exemption mentioned in the above point 7 is not for the import of cruise ships, excursion boats and vessels principally designed to transport person.

Further extension in GST exemption

The Finance Act 2025 gave exemption on import of CKD kits for local manufacturing of electric vehicles like small cars, SUVs with 50 Kwh battery or below and LCVs with 150 Kwh battery or below. This exemption was ending at 30^th June 2026. It has been extended till 30^th June 2027.

Condition of the exemption added for PIA

The import and lease of aircrafts including their parts executed by Pakistan International Airlines (PIA) was given exemption from levy of sales tax for the tax year 2025-26. However, the Finance Act 2026 has added below conditions for PIA to get this exemption:

1. Pakistan customs will ensure that quantity of imported parts is limited to the requirements of usage of materials, operation and maintenance.
2. The usage of imported items like ground handling equipment, service and operation vehicles, catering equipment and fuel trucks will be within airport premises.

Disclaimer

The content of this blog is only for the informational purpose. For making any decision, it is recommended to refer to the original text of Sales Tax Act 1990 and consult a qualified accountant or tax consultant. ConSerIC Accountants is not responsible for any decision taken on the basis of this blog.

Legal References

1. Finance Act 2026
2. Sales Tax Act 1990 (Updated up to 30^th June 2026)